Skype is changing the way it charges VAT to EU customers

Skype has announced that it is changing the way it charges VAT to EU customers. Instead of charging VAT when customers add credit, Skype will add the relevant taxes when you actually use the service to make a call or buy a new subscription.

Until now, 15% VAT (8% for Swiss residents) was charged while purchasing credit, so if you were to buy €10 worth of credit, you would have been charged €11.5. Going forward, if you add €10 worth of credit, you will be charged €10.

When you make a Pay As You Go call or buy a new subscription, VAT will be charged for that transaction and deduced from your credit. For instance, if you want to buy a plan that costs €5/month, you'll be charged €5.75 (which includes VAT) during the time of purchase of the plan.

The VAT changes will begin rolling out starting July 28 2014. If you're interested in learning more, head on over to Skype's community page which details the changes.

How many of you use Skype regularly for calling? Do these changes make it easier for you to track how much VAT is being charged?

Harish Jonnalagadda

The clumsiest man in tech.